Social Preferences

Abstract

In the light of a vast amount of theoretical and experimental research, many economists are already used to the idea that people hold social (that is, interdependent) preferences. This opinion has been influenced by an abundant literature showing how experimental subjects, using classical experimental protocols, act as though they are attempting to maximize an objective function through which, in addition to their self-interest, they also take into account the wellbeing of other individuals participating in the experiment.